High turnover spurs bumper benefits

Staff turnover in financial services in Ireland has reached 15% - and even 20% in some niche areas - according to Mercer's 2007 Remuneration Guide.

In a bid to keep staff, firms are offering more holiday, mortgage subsidies, travel allowances, contributory pensions, car allowances (usually paid in cash), training and development, private health care and even counselling sessions.

Bosses are getting up to €53k for their car, whereas senior managers typically get €42k for a motor.

Pay looks set to increase by 5.5% across all levels, according to the survey, but it's the newbees who are commanding the most money.

"New recruits are paid in excess of those with two to three years' experience, particularly at administration and professional levels," says Margaret McDermott, senior consultant at Mercer.

So how do firms stop the green-eyed monster emerging or prevent existing staff from looking for pastures new once they find out how much is on offer elsewhere?

James Hayes, manager - banking and financial services, at recruiters Robert Walters, says organizations will bring pay for existing staff in line with that for new hires: "Sometimes institutions will build in a salary review for the team as a whole if a new recruit comes in with a higher package."

Hayes also reckons that pay is becoming less of a motivation for candidates, who instead want to look for a clear route up the career ladder. "Companies are offering promotion timelines linked to performance, and training programmes, to keep employees challenged within their roles," he says.